CA Industry Assistance Credit vs. California Climate Credit
Your company may already receive the California Climate Credit—a bill credit for small businesses that typically use less than 20 kilowatts (kW) of power per month. This credit appears automatically on your electricity bill twice a year, in April and October, and applies to customers of utilities, community choice aggregators, and other electric service providers.
If you decide to apply for the CA Industry Assistance Credit, you will stop receiving the California Climate Credit for any service accounts tied to that facility. Instead, you will begin receiving the annual CA Industry Assistance Credit.
To check if you are currently receiving the California Climate Credit, look for the line item “California Climate Credit” on your April electricity bill.
To learn more about the California Climate Credit, visit https://www.cpuc.ca.gov/climatecredit.
Key Differences Between the Two Credits
| California Climate Credit for Small Businesses | CA Industry Assistance Credit |
|---|---|
| Credit is based on a flat amount and may fluctuate every year | Calculated based on historical electricity consumption (2008-2010 for most customers) Exception: Large customers with product-based formulas. |
| Happens automatically | Requires most customers to periodically claim eligibility |
| Applies only to service accounts that typically use < 20kW | Applies to your entire facility and includes all service accounts associated with that facility |
| Appears twice a year in April and October | Appears annually on one service account per facility |
| Will not subject you to an audit | May subject you to an audit |
Choosing Between Bill Credits
If Your Business Has One Utility Service Account
The California Public Utilities Commission (CPUC) has found that for businesses with just one utility account already receiving the California Climate Credit, switching to the CA Industry Assistance Credit may not make a big financial difference. In this case, it might be better to stick with the California Climate Credit.
If Your Business Has More Than One Utility Service Account
It’s harder to say which credit is better—it depends on your company’s operations and facilities usage.
- If ALL your facility's service accounts receive the California Climate Credit for Small Businesses, you may be better off sticking with the California Climate Credit for the reasons outlined above.
- If at least one of your facility's service accounts does NOT receive the California Climate Credit for Small Businesses, it all depends on your electricity usage. You will need to estimate how much you might receive from the CA Industry Assistance Credit and determine for yourself whether it's in your best interest to switch.
What happens if you switch?
f you apply for the CA Industry Assistance Credit:
- You will stop receiving the bi-annual California Climate Credit for all service accounts tied to that facility for the duration of your participation in the CA Industry Assistance Program.
- If you submit an application by September 30, you will receive the CA Industry Assistance Credit in April and continue receiving it annually for as long as you participate.
CIAC Open Enrollment Period
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